This tool is designed to assist in forecasting both capital and operating costs.
- Capital costs are forecasted using zero-based budgeting. By identifying major IT projects and outlining major costs, the Excel tool is able to aggregate costs and differentiate between your non-discretionary and discretionary capital budget.
- Operating costs are forecasted using incremental budgeting. The tool allows for last year's operating expenses to be adjusted for inflation, changing labor costs, changing vendor prices, and changing service levels.
Additionally, the tool generates diagrams that can be used in the IT Budget Presentation and the IT Revised Budget Presentation. Specifically, the tool generates visual displays of operating and capital expenditures broken down by expense type (discretionary vs. non-discretionary) and account. Additionally, diagrams exist to compare this year's IT budget to historical IT spending.